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Is Schwab Core Equity (SWANX) a Strong Mutual Fund Pick Right Now?
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Mutual Fund Equity Report fund seekers should not consider taking a look at Schwab Core Equity (SWANX - Free Report) at this time. SWANX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Schwab Funds is responsible for SWANX, and the company is based out of San Francisco, CA. Schwab Core Equity debuted in June of 1996. Since then, SWANX has accumulated assets of about $1.41 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 10.01%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.47%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. SWANX's standard deviation over the past three years is 19.07% compared to the category average of 18.9%. Over the past 5 years, the standard deviation of the fund is 17.34% compared to the category average of 17.24%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.99, the fund is likely to be as volatile as the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -2.37. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
As of the last filing date, the mutual fund has 97.38% of its assets in stocks, and these companies have an average market capitalization of $467.45 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
This fund's turnover is about 28%, so the fund managers are making more traders than comparable funds in a given year.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, SWANX is a no load fund. It has an expense ratio of 0.73% compared to the category average of 0.92%. Looking at the fund from a cost perspective, SWANX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Schwab Core Equity ( SWANX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Schwab Core Equity ( SWANX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on SWANXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Schwab Core Equity (SWANX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should not consider taking a look at Schwab Core Equity (SWANX - Free Report) at this time. SWANX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Schwab Funds is responsible for SWANX, and the company is based out of San Francisco, CA. Schwab Core Equity debuted in June of 1996. Since then, SWANX has accumulated assets of about $1.41 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 10.01%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.47%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. SWANX's standard deviation over the past three years is 19.07% compared to the category average of 18.9%. Over the past 5 years, the standard deviation of the fund is 17.34% compared to the category average of 17.24%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.99, the fund is likely to be as volatile as the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -2.37. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
As of the last filing date, the mutual fund has 97.38% of its assets in stocks, and these companies have an average market capitalization of $467.45 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
This fund's turnover is about 28%, so the fund managers are making more traders than comparable funds in a given year.Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, SWANX is a no load fund. It has an expense ratio of 0.73% compared to the category average of 0.92%. Looking at the fund from a cost perspective, SWANX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, Schwab Core Equity ( SWANX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and lower fees, Schwab Core Equity ( SWANX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on SWANXin the Mutual Fund Equity Report category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.